Phnom Penh, Cambodia – June 28, 2024 – In a significant step forward for green finance in Cambodia, Royal Group Phnom Penh SEZ (RGPPSEZ), announced the issuance of KHR 41 billion (approximately USD 10 million) green bond in the first trench which is guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB), and another USD 10 million to follow in the second trench. The issuance will support green projects in Cambodia, including a wastewater treatment plant and sustainable infrastructure. These projects will directly contribute to greenhouse gas emission reductions and help Cambodia achieve its nationally determined contributions (NDCs).

H.E. Sou Socheat, Director General, Securities Exchange Regulator of Cambodia (SERC), said, “Cambodia is vulnerable to climate change and needs more investors to invest in sustainable development with a long-term perspective and green bonds offer the opportunity to earn a return on their investment while supporting environmental causes. Issuers benefit from accessing capital for sustainable projects and it also indicates their commitment in contributing to the sustainable development.’’

The issuance is the result of the Cambodia Sustainable Bond Accelerator Program, an initiative built on partnership among the Securities and Exchange Regulator of Cambodia (SERC), Global Green Growth Institute (GGGI), the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in collaboration with the CGIF and GuarantCo, part of the Private Infrastructure Development Group. Through this Program, RGPPSEZ, was selected last year to receive technical assistance, issuance support and enhanced investment support such as credit enhancement.

‘’The successful issuance and listing of RGPPSEZ’s green bonds exemplify our collective commitment to addressing climate change and advancing sustainable development. This milestone highlights the vital role of innovative financing solutions in mobilizing resources for a greener, more resilient future. This has been a great journey to promote sustainable financing through the Sustainable Bond Accelerator Program which is also co-funded by the government of the Grand Duchy of Luxembourg through the Global Trust Fund on Sustainable Finance Instruments (GTF).’’ said Ms. Shomi Kim, Country Representative of GGGI Cambodia.

“The Cambodia Sustainable Bond Accelerator Program stands as a testament to how partnership and cooperation can advance the financing of the SDGs and climate action in the region. This initiative, among other sustainable finance efforts supported by ESCAP in Cambodia, is pivotal in creating a sustainable capital market and a supportive financial ecosystem. We are proud of this collaborative achievement, which sets the stage for a sustainable and prosperous Cambodian economy” said Dr. Hamza Ali Malik, Director of Macroeconomic Policy and Financing for Development at ESCAP.

Mr. Hongwei Wang, Chief Executive Officer of CGIF, stated “CGIF is proud to guarantee Royal Group Phnom Penh SEZ’s first bond issuance and Cambodia’s inaugural green bond. This initiative not only signifies a major milestone for RGPPSP but also sets a precedent for sustainable development in Cambodia. This milestone is a testament to CGIF’s commitment to fostering sustainable development in the region and further promote Cambodia’s bond market to support macroeconomic stability. Further, CGIF’s support will enable RGPPSP to advance its green infrastructure, promoting environmentally friendly initiatives within Special Economic Zones.” Mr. Wang further adds, “This bond sets a new standard for other issuers in Cambodia, demonstrating viability and the benefits of green financing.”

Mr. Nishant Kumar, Managing Director, Asia, at GuarantCo said, “We are delighted to be part of the this sustainable finance activity in Cambodia. GuarantCo has been a strong supporter of sustainable finance for infrastructure in the country and across Southeast Asia through our transactions such as with Cellcard (CamGSM). We are glad that this transaction builds on the broader momentum and paves the way for a future where more Cambodian companies can access green and sustainable capital.’’

At the Official Green Bond listing Ceremony which took place today at Cambodia Securities Exchange (CSX), Mr. UEMATSU Hiroshi, CEO, Royal Group Phnom Penh SEZ, said, ‘’This green bond is an important step in our company’s involvement in helping Cambodia achieve its climate target and help address the gap between investors and investment in sustainable development this bond presents a compelling opportunity for investors seeking to align their financial goals with positive environmental impacts.’’

Sustainable, thematic, and green bonds offer Cambodia a three-pronged approach to balancing environmental and economic development. These instruments not only fund critical projects but also attract investment capital fueled by the global sustainability movement, all while contributing to the broader development of Cambodia’s financial market. Launched in February 2023 the Cambodia Sustainable Bond Accelerator Program aims to accelerate the development of Cambodia’s green and sustainable bond market and associated policies, tools, and mechanisms to facilitate financing towards climate mitigation and adaptation initiatives.

For Media Inquiries, Please Contact:

– Mr. Samedy, SUT, at sut.samedy@gggi.org

– Mr. Mey Lybunleaph, at m_lybunleaph@serc.gov.kh

– Ms Vith Boravy. Corporate Secretary, Corporate Disclosure Dept, Royal Group PP SEZ PLC at boravy@ppsez.com

About Cambodia Sustainable Bond Program 

Launched in February 2023, the Cambodia Sustainable Bond Accelerator initiative builds on the UNESCAP, GGGI, SERC, CGIF and GuarantCo, partnership which aims to accelerate the development of Cambodia’s green and sustainable bond market and associated policies, tools and mechanisms to facilitate financing towards climate mitigation and adaptation initiatives. Through a series of targeted measures focusing on both issuance and post-issuance processes, the partnership will contribute to enhancing the ability and interest of issuers in Cambodia to move from traditional bond issuance to green, sustainability and sustainability-linked issuance, and ultimately expand climate related investments in Cambodia. Selected private issuers would be provided with:

• Technical Assistance and Support: Issuance support based on best practices and international standards, review of green and sustainability bond framework and capacity building;

• Financial support: cost-sharing support for the second-party opinion and other issuance costs

• Investment support: support for roadshows, connecting to investors, and credit enhancement where feasible.

About The GTF

Created in 2023 with the support of the Government of the Grand Duchy of Luxemburg, the GTF aims to close the development financing gap by leveraging the capital market’s potential to promote climate change mitigation and adaptation by setting in place policy incentives and de-risking measures to direct bond proceeds towards low carbon resilient projects and initiatives. With GTF’s support, GGGI provides technical assistance which aims to strengthen the national green finance ecosystem of a minimum of 10 developing countries through the development of policy frameworks across six countries and training 400 private and public sector sustainable finance experts. GGGI will deliver pre- and post-issuance and credit enhancement support to up to 15 potential issuers, leading to an expected 10 thematic bond issuances raising USD 2 billion earmarked to NDC targets. The program’s direct capital mobilization will contribute to avoidance of 130MtCO2 emissions, enhance the climate change resilience of 2 million people, and support the creation of 400,000 green jobs. Luxembourg Stock Exchange (LuxSE) is one of the strategic implementing partners of the GTF.